If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the debit portion of the entry?

A) increases the balance of a contra expense account
B) increases the balance of a stockholders' equity account
C) decreases the balance of an asset account
D) decreases the balance of a liability account

Contra Expense Account

An account that is offset against an expense account on the income statement, effectively reducing the total expense reported.

Expense Account

A ledger account that records transactions related to costs incurred by a business in the process of earning revenue.

Adjusting Entry

An accounting record made at the close of an accounting period that assigns income and expenses to the correct period.